Analysts Thoughts On JPMorgan's (JPM) Investor Day

Investors are feeling positive about JPMorgan Chase & Co. (NYSE: JPM) today following the company's investor day yesterday. Shares are up 3% today to $41.85.

A number of analysts are expressing their thoughts about the meeting. Many had positive things to say about the event, highlighting early credit improvements and plans for business investment. One firm commented on the dividend, saying some investors may have been disappointed that it wasn't raised but they think a dividend raise will be coming soon enough.

• Deutsche Bank "JPM estimates normal EPS of about $5.50-6.00 before capital deployment and we estimate closer to $7.00 including it. These estimates are likely in-line with most expectations but, more importantly, it's easier to see the path to these earnings than for most banks. While many banks retrench, figure out how to exit TARP, develop new strategies and fill mgmt voids, JPM continues to reduce risk (incl its carry trade) and position for growth. Growth initiatives include: investing in several areas, acquisitions, and being in a position to capitalize on future opportunities (ie CRE restructuring)." Maintains Buy rating, $47 price target.
  
• Goldman Sachs: "The message from JPMorgan Chase's investor day: the bank is firmly on the front foot investing for growth, while seeing signs of a turn in credit and a bounce in capital markets. Some investors may be disappointed that a dividend increase did not come. That said JPM is willing and able to pay one, just not yet ready." The firm thinks the dividend can increase to $0.75-$1.00 in the 2nd-half and see a normalized dividend of $2.25 (6% yield). Reiterate Conviction Buy List rating, $54 price target.
  
• Wells Fargo: "Overall, while management extolled the virtues of its broad franchise to drive normalized earnings power, it continues to exude a cautious tone on the operating environment and credit, in our view. The company intends to maintain its strong balance sheet in order to protect the company against a potential double dip recession or a precipitous rise in interest rates. JPM did not take the opportunity to update guidance despite early signs of credit improvement, as the company outlook was largely unchanged from Q4 2009 disclosures." Maintains Market Perform rating, $48-$50 valuation range.
  
• Collins Stewart: "...management's tone remained rather consistent - while acknowledging the challenges that lie ahead, they appear to be cautiously optimistic about the overall improving trends in the economy. The firm's position is strong and we expect that it will continue to gain momentum and garner additional market share across most of its businesses as calmer seas emerge." Reiterate Buy rating, $53 price target.
  
• KBW: "Overall, JPM is seeing early signs of credit improvement; however, the company remains cautious regarding the economy. Finally, the company provided a revised capital allocation and targeted returns for each business line. Following this review, we remain comfortable with the mid-point of our normalized earnings estimate of $6.00 per share." Maintain Buy rating, $54 price target

You May Also Be Interested In

• Deutsche Bank Upgrades Target Hospitality (TH) to Buy
• Guidepost Solutions Welcomes Senior Financial Crime Executive Joseph E. Evans as Senior Managing Director
• JPMorgan Starts UMB Financial (UMBF) at Overweight